FX.co ★ EUR/USD technical analysis and trading recommendations for November 29

4-hour timeframe

Overview:

The sell signal with a target to 1.2949 is still observed. The current signal is strong and confirmed, as the price is below the Ishimoku Cloud and the Chinkou Span managed to fixate below price graph. In this case the first target for downside movement is the first support level of 1.3033. In case the first resistance level is broken through the next target will be the second support level of 1.2824. The crucial level below which the downwards movement is still observed is 1.3400 (Kijun-Sen), it is recommended to close short positions above this level. The Chinkou Span is below the price graph, thus confirming the current sell signal. Bollinger Bands show the continuation of downtrend, the lines are converging and directed down, this mean the probable correction movement against the downtrend, but it is not observed yet. MACD is ascending, thus pointing to slight correction movement.

Trading recommendations:
Currently it is recommended to trade down with a target to 1.3033, we enter the market only after MACD reverses downside. Stop Loss is placed above 1.3400.

In addition to technical image, one should take into account the fundamental data and the time of their release.

The chart annotation:
Ishimoku indicator:
Tenkan-sen — red line
Kijun-Sen — blue line
Senkou Span A — light brown stipple line
Senkou Span B — light purple stipple line
Chinkou Span — green line
Bollinger Bands indicator:
3 yellow lines
MACD indicator:
The red line and the histogram with the white bars in the indicators window.